Examlex
On a supply-and-demand diagram,consider a price for which the horizontal distance to the supply curve exceeds the horizontal distance to the demand curve.There is a __________ at that price and the current price must be __________ the equilibrium price.
Call Option
An agreement that allows the purchaser the option, without being required, to buy a specific asset like a stock, bond, or commodity, at an agreed-upon price within a set timeframe.
Exercise Price
The specified price at which the option holder can buy (call option) or sell (put option) the underlying asset.
Call Option Contracts
Financial agreements giving the buyer the right but not the obligation to purchase an asset at a specified price within a certain period.
Underlying Stock
The specific stock that represents the equity interest in which options, futures, or other derivatives contracts are based on.
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